February 2017 Business Report

I’m pulling the curtain back on my small business!

Starting this month, I’ve decided to share my monthly business reports. In these reports, I’ll discuss the month’s positives and negatives as well as progress I’ve made towards my 2017 goals. I’ll also give a snapshot my earnings.

Although I’m starting the recaps this month, I have to admit, it’s been one of the worst months I’ve had since I started my business in 2015.

Here’s what happened.

Positives

I should have done this so much sooner! Within a week of adding an easy-to-use contact form to my Squarespace website, I received two client requests. Ultimately, one did not work out, but the other did.

I got a brand new client without the effort of pitching or self-promotion. I have always had my email address in a visible location on my page, but adding the Work With Me contact form made a huge difference. If you don’t have one, get one!

  • Raised client rates

I had two long-term clients (1.5 years and 2 years) who had not had a rate increase since I started working with them. My work load had changed and my experience had grown so I knew I needed to raise my rates. I wrote about this topic as I was doing it so saying “feel the fear and raise your rates anyway” was as much for readers as it was for myself.

  • Started regularly cold emailing

As you’ll read in my negatives section, I unexpectedly lost two clients this month. Although, this was a negative, it led to a positive. I began cold emailing local businesses and organizations on a daily basis. I set a goal of sending out five emails/messages per business day. I began this practice near the end of February and have not had sales yet.

  • Set daily social media goals

I know how important an active social media presence is for small businesses, but I’m often so busy doing client work that I don’t practice what I preach and put time into my own business. In February, I set the goal of following 10 people on Twitter and pinning 10-20 things each day. I’ll continue to up my social media game once The Sturm Agency site is live in March.

I decided to shift some of my attention to making this blog more successful. I enrolled in Elite Blog Academy and have started working on the lessons. I’m really excited to see where this takes me!

Negatives

  • Loss of two long-time clients

A client that I’d be working with since Zirtual days (August 2014) who was also my highest paying client, made a business change and no longer needed my services. The announcement was a bit of a shock, but I had noticed a slowing down in usage over the past few months. There was a sudden problem with paying my invoices on time. This client ultimately refused to pay me for my last month of service.

Although this is not the only client I’ve lost, this experience was a learning lesson for me on several fronts. I was given no notice that work was ending, but was simply told “don’t work from today on”. That day happened to be my birthday.

I also lost a client who decided to use another company. This client loss surprised me because we’d also been working together for two years. Unfortunately, I’d made a small error about a month ago that the client was very upset about. I have to believe it contributed to my dismissal. This client gave me a week’s notice, but then canceled payment three days later.

Here’s what I learned:

1) Always have a contract in place. I had never put together a formal contract with these clients and I wished I had. It may not have gotten me anything more than 30 days notice or an extra payment, but that would have made a difference.

2) Don’t have too much tied up in one client. I preach diversification and am working towards that model, but one particular client still held too much of my monthly income (around 45%). Their leaving caused me to scramble for new clients.

3) Don’t assume that small business owners or entrepreneurs will give you the same courtesy that they’d want. I was very surprised to find that both clients ended the relationship with very little notice and showed a lack of caring, respect and integrity during our final interactions. These clients are entrepreneurs who have fluctuating incomes based on booking gigs or securing projects. This experience made me vow to have a more compassionate approach should I ever hire someone and need to stop services.

Progress towards business goals

1) Increase my income by $10,000

The goal took a hit with the loss of two clients. I think I can recover from this, but it will be a bit of a struggle. I’ve had to look for more opportunities and ask for more subcontracting work in the meantime.

2) Get another local client

I’ve begun the process of seeking out new local clients through cold emailing and word of mouth, but have not secured one yet. I hope to have at least one new local client in March.

3) Launch The Sturm Agency website

I think we’re going to use Squarespace for The Sturm Agency, but I’m not sure yet. I really love the simplicity of it and because I don’t intend on monetizing the site. I intend on keeping it as a “business information only” site while maintaining Freelancing Mama as my blog and future monetization opportunity. I plan to get something live by the end of March.

4) Launch my freelancer idea

I have not made any progress on this goal yet.

5) Sponsor something in the community

Nothing jumped out as the right opportunity in February, but I will continue to keep looking for possible sponsorships in the Roscoe, Rockton or Rockford, IL areas.

Income Snapshot

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I may eventually share the actual numbers associated with my income, but for now I’m not comfortable doing that. I will be sharing this income snapshot to show a trend of my income throughout the year.

This income came from a mixture of social media management, virtual assistant work, one-off organization projects, and content writing.

Overall, it was a rough month, but I’m confident that March will bring better luck.

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